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Borneo Herald
2.30PM MYT, 17-10-2025
By Datuk Roger Chin
TODAY marks a turning point for Sabah. The High Court has upheld what we have long fought for — our constitutional right to 40% of federal revenue. This victory belongs to every Sabahan who never stopped believing that justice would come.
The High Court of Sabah and Sarawak has delivered a judgment of historic importance. It confirms that Sabah’s 40% Special Grant is not a privilege to be negotiated, but a constitutional right owed since 1963.
For half a century, our entitlement was withheld. These were the “lost years,” when promises made at the birth of Malaysia were forgotten. Today, the Court has restored those promises and reaffirmed the rule of law.
This ruling is more than numbers. It means schools for our children, hospitals for our families, roads that connect our villages, and opportunities worthy of Sabahans. It is about dignity, fairness, and respect for Sabah’s rightful place in Malaysia.
This victory also recognises the vital role of the State Government of Sabah, which has continued to uphold and assert the State’s constitutional rights. The State’s efforts in clarifying the historical records — including the Share of Growth of Federal Revenue Derived from Sabah from 1964 to 1968 — have been instrumental in reaffirming that the intent and effect of Articles 112C and 112D remain unchanged. The acceptance of the interim payments were without prejudice to the State's constitutional rights. The Court’s decision confirms that the 1969 Order to vary did not extinguish or alter the original formula, but that the constitutional mechanism guaranteeing Sabah’s 40% share has always remained intact.
The Court’s decision now sets into motion a clear course of action. Part of the flawed 2022 Review Order has been quashed, together with the subsequent Review Orders 3 and 4 that were issued to replace and continue it, not the entire orders themselves and there is no order against the State Government of Sabah. They are flawed insofar as they implied that the omitted years could be forgotten — the Court has ruled that such omission was unlawful. Importantly, this does not affect the 40% grant due to Sabah from 2022 onwards under those orders. The Federal Government must meet with the State Government of Sabah within 90 days and reach an agreement within 180 days, applying the 40% formula guaranteed by the Constitution. The arrears due from 1974 to 2021 have been recognised as a continuing debt to Sabah, and payment must follow — whether through direct settlement or constitutional damages. Until these obligations are fulfilled, all reliance on the 2022 Order and its successors is stayed. In short, the constitutional path is restored, and Sabah’s rights must now be given practical effect
What this means for the people of Sabah
The Constitution’s original promise must be honoured. Within the next three months, the Federal Government must sit down with the Sabah State Government — the rightful constitutional counterpart in this process — and within six months they must agree, using the 40% formula, on what Sabah is owed.
The Court has also ruled that Sabah is entitled to what was denied for almost fifty years, from 1974 to 2021. This money must be paid to the State, either directly or through compensation. Until that happens, the Federal Government cannot rely on the flawed review orders. The law is clear, the formula must be followed, and Sabah must finally receive its rightful share.
The Sabah Law Society will resist vigorously any attempt to appeal or undermine this decision. At the same time, it is hoped that now that the Court has spoken and decided, the Federal Government will respect the judicial process, accept the outcome, and abide by it. While it remains their right to appeal, doing so would betray sincerity, especially when successive governments — including the present one — have pledged to honour MA63 yet failed to resolve the 40% entitlement.
This judgment is not a victory against the Federation — it is a victory for the Federation. It proves that Malaysia honours her founding promises, that no State stands beneath the Constitution, and that true unity is built not on neglect but on respect.
Today, Sabah has been heard. Today, justice has been done. And today, history records that promises made in 1963 remain promises kept in 2025.
The Court has ended Sabah’s lost years — justice has been restored and the promise of Malaysia redeemed. Honouring this judgment is not just about Sabah — it is about strengthening Malaysia itself.
Datuk Roger Chin is the Immediate Past President of Sabah Law Society.#~Borneo Herald™
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